Golf Management Monthly: February 2016

By: Joe Goodrich

Dear
Friends,

The
nation’s blizzards didn’t slow down Billy Casper Golf. Owner of the largest “known golfer” database,
our sophisticated marketing system segments customer-member profiles and
tailors messages based on their unique buying behaviors. Throw in BCG’s dynamic pricing models akin to
the airline and hotel industry, and this type of hyper-targeted outreach is
virtually unheard of in golf.

News
and notes from our herd:

Growing Up

More than 25% of the U.S. population are millennials. On the precipice of entering their prime
earning (and spending) years, the 18- to 34-year-old set is re-shaping the
economy and will change the way we buy and sell for decades to come. In golf, millennials:

Represent
28% of America’s nearly 25 million players

Are
projected to increase their rounds played by more than 10% in 2016

Spend
roughly $5 billion on golf annually

Who
swing a club for the first time say they are “hooked” 25% of the time

Triumphant Trio

BCG’s
winning teams have a track record of improving the quality of golf and
financial performance of courses nationwide.
Golf Inc. magazine judges agree, naming three of our general managers
among its “Operators of the Year:”

Gary
Huebner (1757 Golf Club, Dulles, VA) earned
first place in the daily-fee category for increasing rounds and revenue by 12%
and 13%, respectively. Banquet and
restaurant sales also hit record highs in 2015 under his leadership.

Chris
Strand (Dauphin Highlands Golf Club,
Harrisburg, PA) topped the municipal list for producing a 15-year high in
profits. The BCG veteran oversaw a
nearly $750,000 investment, including a complete facelift to The Five Iron Grille.

David
Peru (Devou Park Golf Course, Covington, KY) also
won top honors for boosting rounds by 15.1% and overall returns by 20.4%. His drive to engage a wider audience helped Devou
Park become the local hot-spot for men’s and women’s leagues, tournaments and
outings.

Pop Culture

Jordan
Spieth continues to prove he’s the “can’t miss” kid of sports marketing. Shortly after dominating the field at the
Hyundai Tournament of Champions, Coca Cola signed the World No. 1 to one of the
richest deals in company history.

Spieth,
and the sport he represents, will appear in everything from TV commercials to
digital and social media campaigns. Reports
are that the new partnership puts golf’s superstar on the same level as global
icons LeBron James and Taylor Swift.

With
continued stellar play, a relatable personality and multi-national companies
backing him, golf’s new face will keep the sport in the spotlight for years to
come.

The Climb

Golf course owners are set to reap the benefits of these wallet-filling energy
trends:

Crude
oil hitting 13-year lows of less than $28 per barrel

Americans
paying less to heat their homes and drive their cars

Add this to the mix:

Since
the recession, the ratio of 25 to 54 year-olds in the workforce has hit a
record high of 77.4% of the total population.
History shows when labor picks up, wages follow suit. As a result, we are spending extraordinary
amounts of money on experiences versus goods and products.

Excitement Abounds

2016
promises to be one of the most important years in golf history. On the player side, the rise of a “Big Three”
(Spieth, Rory McIlroy and Jason Day) and Lydia Ko’s popularity among junior
golfers is fueling participation. On the
event side, the British Open, PGA Championship, Olympics and the Ryder Cup are
being played within a roughly three-month span. Golf will consistently be in
the global news.

Corner Kicks

The
United States won the recent FootGolf World Cup in Buenos Aires, besting Argentina,
Holland, Great Britain, Italy, France, Mexico, Japan, China, Korea and 16 other
competing countries. Three U.S. team
members earned their spots via the inaugural U.S. FootGolf National
Championship at BCG-managed Sydney Marovitz Golf Course in Chicago.

FootGolf
is a hybrid golf-soccer sport that is attracting new audiences worldwide and adding
meaningful income to BCG courses.
Installation is fast and inexpensive, and provides healthy returns
within a matter of months.

Keep Pace

We’ve hit the ground running in 2016 and invite
you to come along for the ride. Kindly
contact me to discuss how our deep knowledge of the game and those playing it
can benefit your operation.